China goes after more investments from Taiwan

Faced by a weakening economy, China offers Taiwanese investors a package of bank loans as incentives.

China is promising Taiwanese investors some US$94 billion in bank loans over the next four years to help set up their businesses on the mainland. Taiwanese government officials said the loans will be provided by China’s top banks, including the Industrial and Commercial Bank of China, Bank of China, China Construction Bank and China Development Bank.

Approved Taiwanese investment in China was US$13.1 billion in 2011, up 33$ from $9.84 billion in 2008. Overall officially recognised Taiwan investment in the mainland has amounted to US$115 billion since 1991.

Exports to China reached US$124 billion last year, 25% higher the US$99.5 billion recorded in 2008.

The Taiwanese government under pro-Beijing President Ma Ying-jeou is confident of improving economic relations with China.